The Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with Rongxing Investments Limited worth US$122 Million for the expansion of its copper processing operations in Kalulushi.
ZDA Director General, Albert Halwampa, says the development reinforces Zambia’s position as an attractive mining and industrial investment destination and is a direct response to President Hakainde Hichilema’s call to grow the economy together.
Mr Halwampa was speaking during the signing ceremony at ZDA office in Lusaka today.
He added that the project includes expansion of the existing processing facility and will increase copper cathode production from 5,500 tonnes to 10,000 tonnes per annum.
Mr Halwampa said the investment supports Government’s target of increasing national copper production to 3 million tonnes and contributes directly to Zambia’s industrialisation agenda and downstream value addition.
He noted that in the past five years, President Hichilema, as Chief Marketing and Investment Officer, has provided focused leadership and created a stable and predictable policy environment critical for investors to plan and expand.
Mr Halwampa urged Rongxing to look at industries such as electric vehicle batteries and electric motor vehicles, noting that already 30 percent of vehicles in China are electric and the world is moving towards e-mobility.
He stated that the company currently employed 506 workers, adding that the expansion will create 194 additional direct jobs, bringing the total to 700, which demonstrates strong commitment to local employment, skills transfer and human capital development.
Mr Halwampa further indicated that the firm has prioritised procurement from Zambian suppliers and service providers, with over US$346,000 already committed to local suppliers, while the expansion will create opportunities for local contractors, transporters, engineering firms and Small and Medium Enterprises (SMEs).
Jinxun Resources Chairman, Yuan Rong, said Rongxing firmly believes its corporate success is linked to prosperity of local communities.
Mr Yuan said the IPPA is not just a legal document but a testament to unshakeable confidence in Zambia’s future and launchpad for the next decade.
He said upcoming investments will support the Grow Zambia Agenda in two strategic areas by driving mineral value addition and industrialisation through the ongoing expansion, deploying state of the art and environmentally friendly hydrometallurgical technologies to ensure more mineral wealth is processed in Zambia.
Mr Yuan noted that the move will translate into more decent jobs for youths, enhanced technical capacities and increased revenue for the national treasury.
“Second, marching toward the 3-million-tonne copper target by investing in upstream mining, Jinxun will invest heavily in upstream mining exploration, acquisition and development across Zambia over the next three years”, he added.
Mr Yuan assured that his firm will ensure that its investments generate lasting wealth for the Zambian people by building a fully integrated value chain from mine to smelter within Zambia, and by actively embracing the government’s Local Content Policy to partner with Zambian suppliers and contractors.
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